Best Way to Reward an Outstanding Employee

LPedsy on 24/04/2019 - 15:35

Hi all,

I have an employee in the R&D team that has, for the last 3 months, gone so far beyond the call of duty it's not funny.
We have recently introduced a new product to market and he has put in massive time to get prototypes ready, rework said prototypes to accommodate design changes and train production workers. He has worked through weekends and late nights to meet deadlines without overtime. He is a star and we would be pretty buggered right now without him. I'm fairly new to the management game and haven't had experience with this sort of thing. Can you guys suggest some ways that might be nice to acknowledge his efforts? We are a smallish company (30-50 staff) so I'm not going to be spending crazy money.

Education & Work

Comments

  • GG57 on 24/04/2019 - 15:38
    +9

    As you are "…fairly new to the management game and haven't had experience with this sort of thing…", check with your own line manager / supervisor and ask what the company policy on this is.

    • Pedsy on 24/04/2019 - 15:39
      +46

      It was my boss (Company director) that suggested we should do something. He wants me to come up with some ideas though.

      Edit: and being a good manager, I'm delegating it.. to you lot! haha.

      • GG57 on 24/04/2019 - 15:41
        +10

        Cool, then I suggest you ask your boss what the approximate budget is.

      • forumninja on 24/04/2019 - 15:52
        +16

        Do you want to keep this guy in the company? If he's a hard worker like that he will need to be properly compensated for your company to keep him, otherwise a competitor or another company can easily make use of talent like that.

      • payton on 24/04/2019 - 19:17
        +6

        what does he like, what are his hobbies?
        award additional days of paid leave, or set him loose at Friday lunchtime to an awesome lunch, then give him a fully paid-for weekend getaway
        or just bonus cash

      • Ninja9 on 25/04/2019 - 19:39
        +2

        20% pay increase, free food and bean bags

      • DangerNoodle on 26/04/2019 - 07:24

        Back when I was a manager and I won bonuses for store performance, I would share the love around. I'd spend the bonus on the team, we'd go out to dinner and then we'd do something fun like bowling or go-karts. I found that it worked well to build up comraderie and teamwork.

        Hard to do that for just one staff member though.

        • Other on 27/04/2019 - 09:19
          +1

          One on one: Romantic dinner?

          • danoz123 on 27/04/2019 - 10:42

            @Other: It's not that bad an idea, jokes aside. Buy him some dinners for 2 to take whoever he wants.

      • Musing Outloud on 26/04/2019 - 12:38
        +2

        Firstly, don't go overboard, otherwise you set your employee up for future high expectations that could backfire on you. Whatever you do, be consistent for all, unless he really has outshone himself. But motivation matters and this is a great opportunity.

        Second, on business matters, a bonus for the effort is good recognition for his recent unpaid efforts to deliver you a successful product launch. And a moderate raise as well, to recognise his skills and talent which your business would not want to lose. What are market rates for his capabilities? Adjust the bonus versus the raise based on market rates.

        Third, on recognition, broader team motivation matters. Your business would want to recognise him (as well as the team who worked with/for him), so things like a product development team meal out, a whole of business meeting recognising him and the team. This sends a subtle 'improve yourself' message to others, so be prepared for future regular recognition sessions for employees (at group meetings) along with tokens of appreciation such as a pair of Gold Pass movie tickets or shopping vouchers etc to suit their personal interests(e.g a DIYer might like a Bunnings card etc, a hobbyist might like a Visa gift card, a sports fan a game ticket or 2). And spread that recognition around in future…

        Finally, and separate to the above, is whether he has skills and talent to lead a team, or move into a next level technical role. Fund the development of his skills.

      • donotuse on 26/04/2019 - 21:29
        +1

        Give him a raise that at least matches his current market salary. If he finds out he is underpaid by industry standards he will be unhappy and will leave (when he does, it’s too late).

  • SnoozeAndLose on 24/04/2019 - 15:39
    +18

    Bonus, dinner out, promotion…

    $$ is a very good incentive.

    Or do a compnay star and advertise his effort

  • Hybroid on 24/04/2019 - 15:40
    +41

    we would be pretty buggered right now without him.

    Promotion.
    Bonus.
    10% of profits royalty.

    • brendanm on 24/04/2019 - 21:05
      +3

      This, sounds like he is absolutely worth it.

      • T1OOO on 25/04/2019 - 16:17

        For a bit of overtime?!? Lol it’s the managers that will get the biggest cut!

        • brendanm on 25/04/2019 - 17:11
          +1

          Sounds like they would have no product without him, so, yes. The manager likely did nothing.

          • T1OOO on 25/04/2019 - 21:42

            @brendanm: Ur so funny. That’s. It how companies and employee relationships work.

  • outlander on 24/04/2019 - 15:44
    +26

    Why would you give him anything? You start giving him things now, and he might start expecting to be properly compensated for his efforts.

    • payton on 24/04/2019 - 19:14
      +10

      /s

        • Hybroid on 24/04/2019 - 20:43
          +20

          A) Going above and beyond your job description deserves recognition and some form of compensation for all the extra hours effort.

          B) What's wrong with people wanting to be properly compensated for their efforts. If he has single handedly kept the company going then there are plenty out there that could use his skills and would be willing to pay for it too.

          • outlander on 25/04/2019 - 10:16
            +1

            @Hybroid: In fairy land it does.

            In the real world, if you depend on people, in business of all places, to recognize the value of your contributions after the fact and pay you accordingly, you are going to be disappointed. That's why contracts were invented, because when it comes time to hand over money people have a tendency to reevaluate the value of things, and that always goes in one direct. Even then, people will still try and weasel out of it.

            That's basically what this thread is trying to find. Its not 'How can I calculate the value of this employees contribution, and then give him a fair proportion of the proceeds' its 'What is the smallest amount that can be spent on this employee to make him feel like he's getting a good deal, so that next time there is a project he will be motivated to work just as hard?'

            But thats a lot of text, and frankly a bummer, so I went with a one line joke that encapsulated the basic essence of the sentiment.

            • Hybroid on 25/04/2019 - 13:17
              +7

              @outlander:

              In the real world…

              …people do get paid bonuses, earn promotions and have other benefits like gift vouchers, days off in lieu, other perks etc for their hard work when they go above and beyond their contracted requirements.

              I didn't neg any of your comments as you're entitled to your opinion but I really hope you're not in a boss/managerial position for the sake of others.

              • T1OOO on 25/04/2019 - 21:44

                @Hybroid: He’s right dude. Simple fact. At most he could hope for is a slight increase of pay say 5% instead of CPI or nothing. Expect anything Moreno than that and ur over paying for what he was hired in the first place for.

                • nussbuster on 26/04/2019 - 10:04
                  +1

                  @T1OOO: Sitting here looking at the 26% increase I just signed on and wondering if I should nod my head and agree with you.

                  • T1OOO on 26/04/2019 - 19:37

                    @nussbuster: Unsure but check out my 125% increase from another treat. Wonder if I should just sit back and nod agree with ya.

              • outlander on 25/04/2019 - 22:27
                -1

                @Hybroid: You don't understand a thing. The people who talk like me aren't the ones who do that. We're the ones disillusioned by how things seem to really work. How greed and short term thinking seems to get rewarded, hard work and generosity get exploited, and all the while the official party line gets repeated by those seemingly too afraid to acknowledge the truth, because they wouldn't know how to conduct themselves.

                I know myself too well to pretend that I would be some super boss just because I have some lofty intentions to help; my organization skills are too subpar at the moment to manage anyone. If I actually followed what I preach, I wouldn't be saying that. I'd be saying something like

                Hey, that's a really great idea! Its important to acknowledge employees for their hard work, and to show them they're a valued member of the team. You should get them something that's special, a gift that's personal, like an inscribed watch. And possibly hold some kind of ceremony to mark the occasion? I don't know, just throwing ideas out! Good luck OP, you're doing a really generous thing!

                Because predators always hide their true colors.

    • smartazz104 on 25/04/2019 - 00:50
      +4

      Imagine that, expecting some sort of reward for going beyond what is expected of you. If all managers thought like you companies would go out of business.

      • outlander on 25/04/2019 - 10:20
        +1

        No they wouldn't. As long as their is a supply of people looking to believe that the system works and that everyone else is just too lazy to put in the hard yards to get ahead, there will always be another sucker ready to prove themselves by working for free.

        • smartazz104 on 25/04/2019 - 13:07

          Well luckily you aren’t in any position of influence.

          • Other on 27/04/2019 - 09:21
            +1

            @smartazz104: Don't worry there are plenty of businesses that seek to exploit workers who need to work for free for qualifications.

          • Jackson on 29/04/2019 - 09:33

            @smartazz104: They dont need outlander, every second manager is that way.

            If anyone thought that promotions were handed out to people that deserved it, they are seriously deluded. They are mostly given to people that the managers like, get slong with, are friends or family. Whole other people who are great at their job and work hard and have more experienve are often passed over while less experienced people are given a shit. Or let go for small things if people dont like what they have to say or dont get along with them if the manager thinks they can get anyone else to do their job.

            Its a sad reality.

      • Zondor on 26/04/2019 - 11:52

        If people are going beyond what is expected they are doing more than 1 person of work. Therefore they should receive benefits equal to the extra work they do.

        And employers wonder why their good employee's job hop.

    • BinnyC on 25/04/2019 - 09:34
      +1

      Well CEO's get big pay cheques and commissions and what not.

      Whats wrong with giving something to just an employee?

      If someone is good and you want to retain that person, you have to recognise or reward him with something.

      • T1OOO on 25/04/2019 - 21:45
        -1

        After years not months.

        • Jackson on 29/04/2019 - 09:38

          Depends on the person

    • desert eagle on 26/04/2019 - 12:19

      It should be in every employees best interests to ensure the company is successful, even more so in a smaller one. At least this guy understands this fact, and the company have recognised his efforts. Not to mention that positively reinforcing good behavior has positive effects on other employees when they see a fellow employee being recognised for their effort.

  • LikeMike on 24/04/2019 - 15:45
    +9

    (Wolf of Wall Street) Cocaine and hookers my friend…

    Seriously though, don't do a plaque or anything like that. What is crazy money to you anyway? Tickets to their favourite sport, event, gold class cinema, river cruise. Restaurant voucher, free parking, stretch limo hire, new suit. Find out what they like and what they would really use or enjoy.

    • T1OOO on 25/04/2019 - 21:46

      I fixed a bug in the core software in my first month that all the other devs could t. Software used by big blue chips. Caused it to crash every 2 weeks. Very annoying. Only thing I got was the CEO’s afl members passed. Was plenty.

      • Jackson on 29/04/2019 - 09:40

        And paid a wage. You might not know how many other bugs people have fixed and not got an AFL pass

    • Other on 27/04/2019 - 09:22

      Events/Experiences are so much better than a company giving a plaque… Unless you are calling a new factory after them.

  • barbarella on 24/04/2019 - 15:47
    +8

    A weekend escape to somewhere awesome would be good…

    • Other on 27/04/2019 - 09:23

      Probably the best option. Perhaps even… 3 days! (inc. 1 workday!) OMG can't believe I thought such a thing. Back to the mines all of you!

      • LikeMike on 27/04/2019 - 10:57

        Having the Tuesday or Thursday off work after/before Easter is a great reward to add an extra day and help avoid the traffic if they do have plans to travel away.

        • Jackson on 29/04/2019 - 09:42

          Except there's no traffic due to Easter break

          • LikeMike on 29/04/2019 - 16:17
            +1

            @Jackson: My reply was "If they do have plans to travel away". If they were, then they would be dealing with the Easter traffic on the Thursday night and the Monday

  • TheMindsetTraveller on 24/04/2019 - 15:53
    +18

    Have a team meeting to acknowledge the outstanding workd / congratulate the staff. For gift, I'd saw a weekend away $xxx dinner/weekend away voucher.

    • Jimmycfc on 24/04/2019 - 16:38
      +10

      I vote this, it's not just a financial reward/experience, getting acknowledgment within the team is also good.

    • purplelady on 24/04/2019 - 17:16
      +5

      don't be too cheapskate though, it can backfire.

      • Jalif on 25/04/2019 - 14:33

        A two for one coffee at the company run cafe. 😉

  • fullmetal on 24/04/2019 - 15:55
    +14

    Give him a share of the company so he will have vested interest in the company.

    • scotty on 24/04/2019 - 16:19
      +9

      This would trigger a capital gain event in the current financial year, which can have severe tax consequence. Check with that employee first otherwise it might end up being a burden for him/her.

      • ilikeradiohead on 25/04/2019 - 00:55
        +2

        Sounds like one of the mods has asked for this before and Scotty had an answer ready haha

        • scotty on 25/04/2019 - 07:44
          +10

          I was the one that got bitten from previous employment where they have performance based incentive. Not small amount either. Fortunately it's a public company so the share can be easily liquidated, as I needed the money to pay ATO. Imagine receiving shares of a small private company that you can't find a place to sell, and you are still hammered with CGT.

          • idonotknowwhy on 25/04/2019 - 12:58

            @scotty: Wouldn't this only be an issue when you sell? So the employee could just not sell the share, and not have any tax obligations.

            • cheng2008 on 25/04/2019 - 13:53

              @idonotknowwhy: I believe so but Scotty needed to sell to pay tax. Other than that if you don’t sell then you can’t spend your reward.

            • scotty on 25/04/2019 - 14:31
              +1

              @idonotknowwhy: No. The capital gain event actually occurs when you receive the share, not when you sell it. That's why the tax comes in the financial year when you receive the share.

              • tomleonhart on 26/04/2019 - 03:32
                +1

                @scotty: That’s so strange. Then what happens when you sell the share? Do you get taxed again ?

                • scotty on 26/04/2019 - 06:28
                  +2

                  @tomleonhart: I just looked up and there seems to be a change to the Employee Share Scheme in 2015. However the tax consequence is still the same. If an employee receives shares at a discount (or for free), then discounted value becomes taxable. However under some circumstances that tax can be deferred until the employee leaves the company, or is able to sell the shares unrestricted.

                  For example,

                  • Acme shares have $1 "market value", and company director give 1,000 of them to employee "Tom" for his exceptional performance. That's $1,000 discount which is taxable. However the tax can be deferred until Tom is leaving the company.

                  • Tom found a better job somewhere else and leaves Acme after 3 years. So in that financial year, he is obligated with tax from that $1,000 capital gain.

                  • 2 years later Tom is trying to sell all his shares in Acme, which is now at $1.50/share. Everything is sold for $1,500, which means a further $500 capital gain that will be taxed.

                  I think that might be the gist of it, although might need to be confirmed with an accountant. So an employee been vesting shares in a company for many years might get a shocking tax bill when he/she leaves the company, when all the deferred tax piles up — which was what happened to me. For me the only way to pay the tax bill (mid-6 figure) is to sell some shares. Fortunately as it's a public company on ASX, selling the share can be easily done.

            • Other on 27/04/2019 - 09:25

              @idonotknowwhy: Nope… And now you know why all the tech people head overseas to US of A.
              Please change username as knowyouknowwhy, Thx.

  • Randxyz123 on 24/04/2019 - 15:57
    +19

    Time in lieu ? - Let them take a Friday before a long weekend as a free day off for example?

    Bonus ?

    Company award signed by the director.

  • GG57 on 24/04/2019 - 16:05
    +9

    With respect, this discussion is pointless unless an estimated budget is known. And the size of the company (i.e. employee numbers) is largely irrelevant.

  • Stewardo on 24/04/2019 - 16:06
    +1

    Money and acknowledgment.

  • lovesabargain77 on 24/04/2019 - 16:13
    +7

    It's great that you want to reward the staff member.

    Just keep in mind if you do reward the person, then you had better be prepared to do the same in the future for other staff members.

    • jjjaar on 24/04/2019 - 18:09
      +2

      And that other staff members may now work unpaid and unasked for overtime in order to get these benefits.

  • websterp on 24/04/2019 - 16:14
    +1

    Put a $$ value to his contribution and the savings he made to the company. Then talk to your boss and decide what percentage of that amount you want to give back to this employee. Could be anything depending on that payback amount - gift cards, air tickets, bonuses, time in lieu, movie tickets…you decide. Also don't forget to do something to appreciate and acknowledge the hard work he had put in(i.e. in a team meeting)

  • [Deactivated] on 24/04/2019 - 16:14
    +13

    Sounds like a strange reward, but keep useless bureaucracy like timesheets, paperwork and pointless meetings away from your technical and capable people.

  • ThithLord on 24/04/2019 - 16:16
    +3

    I'd say a weekend away (don't be stingy) and some extra dollarydoos. You said they worked a lot of unpaid overtime - I'd definitely recommend compensating that handsomely. You only get one chance to not look like you take advantage of your workers, and sting-ing out won't help you.

    • purplelady on 24/04/2019 - 17:17
      +5

      yeah, time in lieu to replace the weekends sacrificed.

  • GG57 on 24/04/2019 - 16:23
    +2

    Mercedes

    • [Deactivated] on 24/04/2019 - 17:20
      +3

      no keep the high yield investment to yourself

  • GG57 on 24/04/2019 - 16:23
    +1

    Around-the-world trip

  • GG57 on 24/04/2019 - 16:23

    A beer after work

  • [Deactivated] on 24/04/2019 - 16:29
    +22

    Get him ozbargain premium membership

  • BuyoTheCat on 24/04/2019 - 16:39
    +7

    At the minimum, give him his time in lieu.
    on top of that, give him a little extra like a holiday.

    If you are going to recognize his work, you need to do that for everyone who has worked hard on the case too and not just him.

  • Changskies on 24/04/2019 - 16:49
    +9

    from my experience of recieving rewards, I found paid holiday and additional leaves the most rewarding after cash incentives. sometimes, money is good but
    sometimes I dont do it for the money but because of my team and career - so $2500 travel voucher with 4 additional paid leaves made me feel very rewarded. but please DO check if your employee has a partner to go with.

  • DarthAntz on 24/04/2019 - 17:09

    Ask him
    1. what he has seen in his previous employment that has been a reward or promotion for commendable output?

    1. There is another employee that we want to recognise for their efforts. If you were manager, how would you respond to this?

    Doing this, you'll get a good idea of what you can do, based on the ideas and influence of the employee.

    If it was my company, I would be honest with the employee, and do my research. I'd put a dollar amount/figure on the productive benefit and cost over the term and offer a reasonable and just percentage of that as a cash bonus. It's what I'd like to receive if I was the cause of the effort and benefits to the company that you describe.
    And if the bonus/reward is well received by the employee, about 1-2 weeks later I'd have a private conversation about their goals working in the company, and push them into a higher position suited for them to continue their streak. They're valuable, productive, and with strategy they could become partnered competition in the future, a la coke and pepsi.

  • Meho2026 on 24/04/2019 - 17:14
    +10

    Maybe a new job with a better manager

  • RM on 24/04/2019 - 17:36

    How long do we need to wait before someone suggests Eneloops??

    In all seriousness, something that will stay with him - like a gadget or a weekend getaway with an experience..

    • payton on 24/04/2019 - 19:19
      +5

      latest and greatest phone or laptop! and add a soundfile so that when it boots, Shao Kahn says OUTSTANDING!

  • mskeggs on 24/04/2019 - 17:39
    +21

    This type of reward is fraught with difficulty.
    Hand him an envelope with a couple of movie tickets and he will be right to feel insulted.
    Even if you offered him a costly reward, he might well judge that it was a poor exchange.
    I have seen people shrug at a wide screen TV or international trip when they feel it is the least they deserved. Better to keep the rewards intrinsic, but genuinely work to promote/develop this valuable employee.

    With this in mind, I think the best things to do are:

    • privately advise that his commitment is well noted, and you will use it as evidence when considering future promotion and pay rise opportunities so the company can recognise this over time (and make sure you do so)
    • single him out for effusive praise in front of everybody.
    • get the big boss to do the same.
    • give him a personal token of your thanks (champagne or similar) explaining that you really valued his contribution to making the team perform so well. Let him know it is a 'thanks' from you personally, not company expenses.
    • ask the big boss what future opportunities you can offer him (more responsibility, training, leadership) that can translate into pay rises/promotion/title inflation/development. If there are real things to discuss, make it a meeting that includes the employee, so he can see how effectively you are taking up his case, and that promises aren't empty.

    If you do it well, you will build strong personal bonds, and loyalty to the company that will see everybody prosper.

    • ihbh on 24/04/2019 - 18:28
      +5

      I agree - get senior people to acknowledge and provide future opportunities and responsibilities to keep on challenging the outstanding performer (e.g. run a project; [not in your case, but you get the idea] run a branch, then region, state, etc.).

      Training is a tricky one. My organisation paid for my executive MBA at the AGSM, which was worth a lot, but the stats show that ~50% of MBA graduates churn after a couple of years if their expectations aren't met, which happened in my case.

      Smallish company - can grant rights/options that vest after X years, subject to certain criteria. If someone is providing multiple times value compared to their pay, this would be an appropriate reward. This is how start ups attract and retain talent. I was in a largish organisation (back then) that was starting a new phase of growth and it granted senior managers rights that vested after a few years when share price targets were met. With hindsight this was a big motivator in my being indifferent to outside opportunities because I'd potentially be forgoing shares worth 1 or 2 year's pay in one fell swoop.

      • Wibbleman on 27/04/2019 - 06:09

        +1 Agree with the rights/options for shares in the companies success.

        • Other on 27/04/2019 - 09:32

          perhaps bad idea due to tax.
          this aint america.

          • ihbh on 27/04/2019 - 09:41

            @Other:

            perhaps bad idea due to tax

            Sophisticated people are prepared to pay tax any day.

            E.g. if you hold on to it for more than 12 months, max tax is < 25%. You get to keep the other > 75%.

            • Other on 27/04/2019 - 09:53

              @ihbh: Who says you can hold it for 12 months?

              When does the CGT event occur? Yes very Sophisticated.

              We ain't Merica.

              • ihbh on 27/04/2019 - 11:04

                @Other:

                Who says you can hold it for 12 months?

                If you can't hold it for 12 months, max tax is < 50%. Sheesh.

                If you're every in this situation, contact me and we'll work out sth and I'll be happy to take it off your hands and pay your tax for you.

                • scotty on 27/04/2019 - 12:04

                  @ihbh: First of all the disclaimer: I am not an account. I think it is not about "holding for 12 months". The first capital gain event happens when the share is "sold" to the employee. Because the employee bought the shares at 100% discount, the entire market value of the shares is counted as capital gain, thus subjects to CGT. You do not get CGT discount either as you are not really holding the asset for more than 12 months.

                  When you actually sell the shares then there will be another capital gain (or capital loss, in case of company not doing that well), calculated from current market value minus the market value when you acquired the shares. If the shares have been held for more than 12 months, then there will be 50% discount in CGT (at least before Labor gets in).

                  As of how to determine the market value of a private company — that's far beyond my understanding.

                  Also there are some situations where employees acquiring shares won't trigger capital gain. For example Start-up concession.

                  • ihbh on 27/04/2019 - 13:40

                    @scotty: Scotty, the point I'm making here is that tax is < 50%. The employee will get to keep > 50% which can be cash equivalent and has growth potential.

                    There might be challenges, but there are ways of managing them:

                    1. There might be cash flow problems - e.g. tax needs to be paid first. The employee can investigate loans, sell some to fund the tax, negotiate with the ATO and incur GIC, etc.

                    2. The share price might fall afterwards. The employee can sell, hedge their holdings.

                    3. The business is private or shares illiquid. If the benefits are large enough, they can get advice from an investment bank etc.; some will even buy at discount off the employee's hands but still leave them with a % of the cash equivalent. They can even see if the other owners will buy the shares. Read about Ronald Wayne the 3rd Apple co-founder and the potentially tens of billions he gave up.

                    People who don't have exposure to investments and finance might only see the downside, but rather than seeing it as curse, it's really a huge benefit. Obviously each individual needs to assess their situation on a case by case basis.

                    • Other on 27/04/2019 - 16:41

                      @ihbh:

                      If you can't hold it for 12 months, max tax is < 50%. Sheesh.

                      1st CGT event are when shares are acquired. That is when you pay tax, not 12 months latter. Especially when they have to sell the shares to pay the tax.

                      Only when 2nd CGT event occurs does it help. Which could be in unlimited years in the future.

                      The employee can investigate loans,

                      Basically not with privately held shares as security - so unsecured loan? What interest rate? Lucky them!

                      So we get given shares (yay!), get tax bill (Ouch), get loan to pay tax, (because can't sell shares), pray to hell the company does not go down, because if it does you now have a nice big fat loan to pay back at a high interest rate. Lucky, lucky them.
                      Remind me how many tech companies fail?

                      And as an added bonus, your interest will affect serviceability for any other loans you get. So have fun declaring that when you go for a home loan!

                      If the benefits are large enough, they can get advice from an investment bank etc.

                      Bahahaha - Uses an American tech company that already had multiple Series of venture capital financing, as an example. Please let me know Any Australian banks offering the same service for an employee who is not a founder or CEO/CFO (or even being a founder!). Say you had $120,000 or $200,000, $300,000 - please, please tell us the investment banks lining up to help you?
                      Lets say you had $500,000 - please let me know the fees to 'help' you? (unless company is already dealing with IBs, and demands low fees).
                      Unless its a established company (like Kogan or Demag(not tech, but close enough) you are shit out of luck (even then probably out of luck anyway). Have fun selling them on the private market, assuming they are listed on Any list. After praying to god the company is not making a loss.

                      People who don't have exposure to investments and finance might only see the downside,

                      No, incorrect - the whole tech scene in Australia has been crying out for change (of course because its a small industry with no political clout they are sh#t out of luck, but anyway). So why if these guys who are returning from the US and had have "exposure to investments and finance" would they be demanding change? They are demanding change because it can be a very, very sh#t deal.

                      it's really a huge benefit.

                      -_-

                      • ihbh on 27/04/2019 - 19:23
                        +1

                        @Other: I was talking about rights/options and vesting. Generally, if you reward management, key employees with some form of equity, you want them to stick around to align their interests with the company/shareholders, so the equity vests in stages subject to hitting certain criteria. There is generally plenty of time to get your head around and manage the benefit and assess the fortunes of the organisation.

                        it's really a huge benefit.

                        Sorry, should have said can be a big benefit. I had to look after kids while the wife just caught the flu and didn't have time to edit. I was thinking of my brother's HBS classmates, some of whom were early employees of Alphabet, etc., but obviously that is not representative.

                        Obviously each individual needs to assess their situation on a case by case basis.

                        • If you can't get reasonable funding, if you can't pay CGT right away and it's less than $100k, no GIC is payable; if > $100k, it's a very reasonable rate.

                        • If the value of your benefit is small, consult a financial adviser, etc. (when I say investment bank, etc., I mean as appropriate).

                        the whole tech scene in Australia

                        I'm not aware of the details and was discussing from a general perspective.

  • Heaps for Cheaps on 24/04/2019 - 17:57
    +2

    I think that a $2000-$4000 bonus would be great, and still only be small % of what he was worth in the end. Though there are some very interesting points in this forum against any compensation, so it may be worth somehow integrating future career path development and a bonus.

Login or Join to leave a comment
Login Join